Although Indiana has miles and miles of farmland, only 14% of the residents live in rural areas. Most car owners live in urban centers in the state, such as Indianapolis and Evansville, where they are likely to pay more for vehicle coverage. The average cost of car insurance in Indiana is $367 for minimum insurance and $1,254 for full car insurance.
How much is car insurance in Indiana?
Many factors can affect your actual car insurance premium, such as your age, driving record, location and the vehicle insurance carrier you choose, making it difficult to precisely determine the cost of car insurance in Indiana.
However, average car insurance rates across the state are lower than the national average car insurance cost of $565 for basic and $1,674 for full coverage. So if you live in Indiana (or plan on moving there), your premiums are likely lower than in many other states. However, you can still probably save on coverage by getting quotes from some of the cheaper carriers in Indiana.
Indiana car insurance rates by company
Take a look at Indiana auto insurance rates by carrier and notice how much annual premiums can vary between companies for the same type of coverage. The Hanover offers full coverage premiums at a whopping average of $4,355, while Pekin’s average full coverage rate is just $673 for the year.
| Car insurance company | Average annual premium for minimum coverage | Average annual premium for full coverage |
|---|---|---|
| Allstate | $452 | $1,566 |
| American Family | $461 | $993 |
| Auto-Owners | $292 | $1,102 |
| Celina | $398 | $1,453 |
| Erie | $312 | $1,027 |
| Geico | $309 | $1,202 |
| Grange | $249 | $872 |
| Hastings Mutual | $298 | $734 |
| Indiana Farm Bureau | $379 | $1,242 |
| Indiana Farmers | $303 | $993 |
| Motorists | $330 | $1,381 |
| Nationwide | $334 | $1,103 |
| Pekin | $216 | $673 |
| Progressive | $391 | $1,174 |
| Safe Auto | $487 | $2,101 |
| State Auto Insurance | $418 | $1,544 |
| State Farm | $299 | $913 |
| The Hanover | $1,261 | $4,355 |
| The Western Reserve Group | $447 | $1,345 |
| USAA | $239 | $834 |
| Westfield | $250 | $1,108 |
Indiana car insurance rates by city
Residents of larger metropolitan areas typically pay more for car insurance. The following table shows the state’s 20 largest cities by population and how Indiana auto insurance rates vary by city.
| City | Average annual premium for full coverage | % increase in average annual premium |
|---|---|---|
| Indianapolis | $1,371 | 9% |
| Fort Wayne | $1,203 | -4% |
| Evansville | $1,308 | 4% |
| South Bend | $1,223 | -2% |
| Fishers | $1,168 | -7% |
| Bloomington | $1,221 | -3% |
| Hammond | $1,835 | 46% |
| Gary | $1,958 | 56% |
| Carmel | $1,146 | -9% |
| Muncie | $1,151 | -8% |
| Lafayette | $1,146 | -9% |
| Terre Haute | $1,266 | 1% |
| Anderson | $1,231 | -2% |
| Elkhart | $1,188 | -5% |
| Noblesville | $1,160 | -7% |
| Mishawaka | $1,201 | -4% |
| Jeffersonville | $1,349 | 8% |
| Lawrence | $1,386 | 11% |
| Kokomo | $1,202 | -4% |
| Greenwood | $1,216 | -3% |
Indiana car insurance rates by age
New, young drivers will almost always pay more for car insurance compared to older ones. Although the rates reflected show that teens and drivers under 25 pay the highest rates, keep in mind that maintaining a good driving record is key to getting continuously lower premiums as you age.
| Age | Average annual premium in Indiana |
|---|---|
| Age 16* | $1,954 |
| Age 18 | $3,919 |
| Age 20 | $2,949 |
| Age 25 | $1,681 |
| Age 30 | $1,465 |
| Age 40 | $1,254 |
| Age 50 | $1,224 |
| Age 60 | $1,189 |
| Age 70 | $1,309 |
*16-year-old calculated on parent’s policy disclosure
Indiana car insurance rates by driving record
One of the most important things to keep premiums low is to focus on safe driving habits and avoid accidents, moving violations, especially DUIs. A single speeding ticket in Indiana could increase your car insurance by 18 percent on average. And a DUI is likely to raise your rates by around 50 percent, which is a massive increase if you are on a tight budget.
| Driving incident | Average annual full coverage premium in Indiana | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $1,522 | 18% |
| Accident | $1,786 | 30% |
| DUI | $2,339 | 46% |
How to save on car insurance in Indiana
If you are concerned you may not be able to afford car insurance in Indiana, there are a few ways you might be able to lower your premiums strategically:
- Drivers with past accidents or tickets: If you have a speeding ticket or recent accident, the first thing you should do is to check and see if you can attend an approved traffic school or defensive driving course to wipe the points off your record. Most can be completed online from home in a few hours and, if approved by your insurance company, could lower your premiums over two to three years.
- Young drivers: Young drivers should consider adding their vehicle to a parent’s policy to save. As you can see in the rates of a 16-year-old on a parental policy versus an 18-year-old on an individual policy, the premium difference can be significant.
- Drivers in Gary or Hammond: If your premiums are higher because of where you live, ask your insurance company for discounts that could offset higher rates. Some reductions you may be able to request include discounts for parking your car inside a private garage or low-mileage discounts if you are currently working from home.
- Find the cheapest carrier: Shopping around for car insurance is the most effective way to save on coverage. Choose several carriers in your area and collect quotes to compare. You may decide to switch carriers if you can save a considerable amount on your car insurance.
Frequently asked questions
How much is car insurance in Indiana per month?
Based on the average cost of car insurance in Indiana of $367 per year for minimum coverage and $1,254 per year for full insurance, your monthly car insurance payment may be roughly $30 or $105 per month. Actual rates will vary, so you should consider shopping around to determine what carriers will charge you.
What is the cheapest car insurance in Indiana?
While there may be other carriers in your area that we haven’t reviewed, Bankrate found that some of the cheapest car insurance in Indiana comes from USAA, Auto-Owners and State Farm. You will probably still want to get quotes from multiple carriers to find the best rates.
When do I need full coverage car insurance?
The easiest way to determine whether full coverage car insurance is the best choice is by looking at your financial picture. If you have assets such as a home or other vehicles, a judgment against you could cause you to lose your home to pay for a lawsuit. Full coverage could lower the chances of such a situation. You will most likely need full car insurance if you lease your vehicle or have a car loan.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
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